The Market News Today: Fed Decision, Tech Earnings, and Jobs Report Set to Rock Markets

Fed Decision, Tech Earnings, and Jobs Report Dominate Market Week Ahead

This week brings critical market events, including the Federal Reserve’s interest rate decision and Chair Powell’s press conference on Wednesday. Earnings reports from tech giants Microsoft, Apple, Amazon, and Meta Platforms will provide insights into the sector’s performance. The jobs report on Friday could influence future Fed decisions. Energy companies like ExxonMobil and Chevron will also report earnings. These events, along with consumer-focused reports from McDonald’s and Starbucks, will shape market sentiment and economic outlook.

McDonald’s Q2 Earnings Preview: Analysts Expect $3.07 EPS Amid Market Challenges

McDonald’s is set to report Q2 earnings before the bell on Monday, with analysts anticipating $3.07 EPS and $6.61 billion in revenue. The company’s stock has declined 15% year-to-date due to concerns about consumer spending and industry health. McDonald’s has implemented value meals to attract customers, including a $5 deal in the U.S. Analysts predict flat U.S. same-store sales, contrasting with last year’s 10.3% increase. Internationally, boycotts in the Middle East may impact sales. The company recently acquired 225 restaurants from its Israeli franchisee.

Wall Street Awaits Busy Earnings Week as Stock Futures Edge Higher

Stock futures rose modestly on Monday, following a volatile week in the market. The S&P 500 and Nasdaq fell last week, while the Dow and Russell 2000 gained. Tech earnings from Microsoft, Meta, Apple, and Amazon are in focus this week. The Federal Reserve’s upcoming meeting is another key event, with traders seeking clues about potential rate cuts. Despite recent volatility, market strategists view increased participation across sectors as a positive sign for long-term investors. The Fed is expected to hold rates steady this week, but traders anticipate a cut in September.

Treasury Yields Dip, Gold Rises as Markets Await Fed Meeting and Economic Data

U.S. Treasury yields fell on Monday while gold prices rose as investors anticipate the Federal Reserve’s meeting and key economic data releases. Both markets are influenced by expectations of potential rate cuts, with the Fed’s preferred inflation measure showing signs of easing. Investors are closely watching for clues about future monetary policy decisions. The labor market data, including JOLTs job openings and the July jobs report, will be crucial in shaping these expectations. Gold’s recovery is supported by a weakening dollar and increased speculation about rate cuts, which reduce the opportunity cost of holding the precious metal.

Trump Stops Short of Bitcoin Reserve Promise, Commits to Holding Current Assets

At the Bitcoin Conference in Nashville, former President Trump pledged to maintain current U.S. bitcoin holdings if re-elected, falling short of promising a strategic reserve. This contrasts with Robert F. Kennedy Jr.’s more ambitious proposal for a 4 million bitcoin reserve. Trump’s stance reflects the complexities of establishing such a reserve, which would require congressional approval. Senator Cynthia Lummis announced plans to introduce legislation supporting a strategic bitcoin reserve, aiming to reduce national debt and combat inflation.